Many people are aware that Texas doesn’t have a personal income tax, but what do you know about property taxes in Texas?

The Austin area is experiencing soaring growth lately, and many people moving here are a little surprised to find out that property taxes in Texas can be quite high. In the Austin area, property tax rates can reach up to 3.2%. Not only that, but property tax rates vary from neighborhood to neighborhood in the same town. So it’s very important to pay attention to the tax rate for each property, if that’s a concern for you.

Each county has an appraisal district and they will determine what they think is the current market value of your home and then multiply that by the tax rate. That will be what you owe in taxes that year. If you feel they estimated too high, you can protest it. You can contact your real estate agent to do a market valuation of your home to see if the appraisal district is wrong or hire a tax attorney to help you. However, if your real estate agent shows you that it is correct or even lower than what you could put it on the market for at that time, you might want to leave it alone.

There are some exemptions available to home owners that can ease the tax burden, which I explain more in the video down below.

In conclusion, if you are considering buying a home in Texas, please make sure to check the tax rate for each home you consider buying. Paying 3.0% in taxes every year can be a deal breaker for many. (And you can check out my other video that explains why some neighborhoods have that high of a tax rate – MUD Taxes in Texas).




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